Alleged N6.9bn Fraud: Absence Of Obanikoro Stalls Fayose’s Trial

The absence of a former Minister of State for Defence, Senator Musiliu Obanikoro at the Federal High Court Lagos on Monday stalled the trial of a former Governor of Ekiti State, Ayodele Fayose over an alleged N6.9bn fraud and money laundering charge brought against him by the Economic and Financial Crimes Commission, EFCC.

Obanikoro who is the 12th prosecution witness began giving evidence on Jan. 31, and he is still undergoing cross-examination by the defence team.

At the last sitting of the court on March 21st, Obanikoro had told trial judge, Justice Chukwujekwu Aneke that he has no document to show that he withdrew the sum of N1.2 billion, which he allegedly gave Fayose.

In his previous testimony before the court, Obanikoro stated that the N1.2 billion was deposited into the account of a company, Sylva McNamara which was used to fund clandestine security operations aimed at preventing terrorists’ activities in Lagos State in two batches.

Asked if he has a receipt of another $4 billion he allegedly gave to Fayose, the former minister said: “In our line of business it’s not customary to ask for receipt or acknowledgement of such money. So, there was no confirmation of the money.”

Fayose was first arraigned on Oct. 22, 2018 before Justice Mojisola Olatoregun alongside his company, Spotless Investment Ltd, on 11 counts bordering on fraud and money laundering offences.

He had pleaded not guilty to the charge and was granted bail on Oct. 24, 2018 in the sum of N50 million with two sureties in like sum.

The defendant was, however, subsequently re-arraigned before Justice Chukwujekwu Aneke, on July 2, 2019, after the case was withdrawn from Justice Olatoregun, following EFCC’s petition.

He had also pleaded not guilty to the charges and was allowed to continue on the earlier bail granted, while the case was adjourned for trial.

The commission has since opened its case before Justice Aneke and is still leading witnesses in evidence.

During Monday’s hearing of the case, Mr Rotimi Jacobs (SAN) announced an appearance for the prosecution, while Mr Olalekan Ojo (SAN) appeared for the second defendant. Meanwhile, Mr Ahmed T. held the brief of Mr Ola Olanipekun (SAN) for the first defendant.

The prosecutor, who informed the court that the case was for continuation of cross-examination of Pw12, added that he was informed by the witness’ aide that he was out of the country.

Specifically, Jacobs urged the court to grant an adjournment to the already existing dates in June.

This application for adjournment was not opposed by the defence counsel.

Ojo, the second defence counsel, however, said that if “the trend continues on the next adjourned date”, he would have no choice but to make the “necessary application.”

On his part, the first defence counsel informed the court of an application seeking leave of the court for the medical travel of the defendant

He told the court that his application was dated May 5 but filed on Monday.

The prosecutor did not oppose this application.

Justice Aneke consequently, granted the defendant’s application to travel for medicals.

He adjourned the case to the already existing dates of June 6 and June 8 for the continuation of trial.

The Lagos Zonal Command of the Economic and Financial Crimes Commission, EFCC, had, re-arraigned Fayose and Spotless Investment Limited on an 11-count charge bordering on money laundering and stealing to the tune of N6.9 billion.

In the amended charge, filed before Justice Aneke, Fayose and one Abiodun Agbele, who is also standing trial on alleged money laundering offences before another division of the court, were alleged to have on June 17, 2014, taken possession of N1.219 billion to fund Fayose’s 2014 gubernatorial campaign in Ekiti State.

They were accused of committing criminal breach of trust, theft and stealing of public funds.

They were also alleged to have on the same June 17, 2014, without going through financial institutions, received $5 million from Senator Obanikoro, who was then Minister of State for Defence.

In the charge, the EFCC alleged that Fayose on April 7, 2015, retained N300 million in his fixed deposit account domiciled in a bank.

Fayose and his company, Spotless Limited, were also alleged to have between June 17 and August 4, 2014, taken control of N317 million, and deposited it in the same bank with a different account number.

The former Ekiti State governor was also alleged to have between June 26 and August 27, 2014, taken control of N305,760,000, which formed part of the proceeds of unlawful act. He was also accused of procuring Abiodun Agbele and a company, De-privateer Limited, to retain N719,490,000 in the bank.

The EFCC further alleged that Fayose used N270 million and N1.15 billion respectively to acquire property at Plot 1504, Yedsema Street, Maitama, Abuja, from one Rabi Kundili, and Chalets 3, 4, 6 and 9, at Plot 100, Tiyamiyu Savage Street, Victoria Island, Lagos, in the name of JJ Technical Services.

He was also alleged to have between October 16 and December 31, 2018, failed to declare his assets and property by not completing the declaration form during the investigation.

The offences, according to the EFCC, are contrary to sections 15 (2)(d); 1 and 16 (d) of the Money Laundering (Prohibition) Act, 2011 as amended, and punishable under Section 15 (3) (4); 16 (2) (b) of the same Act.

He was also alleged to have acted contrary to Section 27(1)(3)(c) of the EFCC (Establishment) Act, 2004.

Fayose denied the allegations and pleaded not guilty to all 11 counts.